Billionaire entrepreneur and Trump adviser Elon Musk has reignited the debate on government-run services, arguing that the U.S. Postal Service (USPS) and Amtrak should be privatized to improve efficiency and financial sustainability. Speaking remotely at a Morgan Stanley technology conference in San Francisco, Musk made his stance clear: “We should try to privatize everything we possibly can.”
Musk Criticizes Amtrak and USPS Performance
During his appearance, Musk compared America’s national rail service to high-speed rail systems abroad, highlighting what he sees as a stark difference in quality. “When you ride bullet trains in other countries, you come back to America, and Amtrak feels like a sad situation,” Musk said. “If you’re visiting from another country, please don’t use our national rail—it might leave you with a bad impression of America.”
Musk, who leads Tesla and SpaceX, suggested that privatization could create a “feedback loop for improvement”, ensuring that inefficient systems either improve or risk going bankrupt. “Something needs to have a chance of failure, or there’s no incentive to improve,” he added.
Trump Administration’s Growing Interest in Privatization
Musk’s comments align with growing interest from President Donald Trump in privatizing certain government services. Before taking office for his second term, Trump hinted at privatizing the USPS, calling it “not the worst idea I’ve ever heard.” He later tasked Commerce Secretary Howard Lutnick with evaluating whether the Postal Service could be incorporated into the Commerce Department.
Trump has long criticized the USPS’s financial losses, which are largely due to rising pension costs and declining mail volume. For the fiscal year ending September 30, 2024, USPS reported $79.54 billion in revenue, thanks to price hikes, but still faced financial struggles.
“We’re losing so much money with the Postal Service, and we don’t want to keep losing that kind of money,” Trump said last month. “Howard [Lutnick] is looking into it. We think it can be turned around, but it’s the Postal Service—it’s a tough one.”
The Debate Over Privatization
Supporters of privatizing Amtrak and USPS argue that private-sector competition could lead to better services, lower costs, and technological innovation. They point to Japan’s privatized rail system and Europe’s mixed public-private models as successful examples.
However, critics warn that privatization could mean higher prices, service cutbacks, and reduced access for rural communities. The USPS has a universal service obligation, meaning it must deliver mail to all locations regardless of profitability. If privatized, companies like FedEx and UPS might not serve remote areas, leaving millions without reliable mail services.
What’s Next?
The idea of privatizing Amtrak and the Postal Service is far from new, but with Musk’s growing influence in Trump’s administration, it could gain more traction. However, any move toward privatization would require congressional approval—a challenging prospect given the divided opinions on the matter.
For now, Musk remains firm in his stance: “We should privatize as much as possible,” he said at the conference, leaving little doubt about his vision for the future of government-run services in the U.S.
